highburyJD wrote:as Chippy correctly pointed out you obviously havent a cluefrankbutcher wrote:We have a massive deficit as a percentage of our GDP. In other words we spend more than our GDP every year. I know exactly what I'm talking about.Chippy wrote:Eh? In that one phrase you have demonstrated you haven't got a clue what you are talking about.we have a massive GDP deficitis wrong - GDP can be measured over whatever period you likefrankbutcher wrote:Shown yourself up again mate. GDP is more akin to Turnover, which is a P&L item. GDP is an annual measure.
and its totally different to turnover
as I said once already: Gross domestic product (GDP) refers to the market value of all officially recognized final goods and services produced within a country in a given period. You said this was wrong - its the dictionary definition.
Final goods and services produced is not turnoverfrankbutcher wrote:The government spends more than GDP derives in income. I thought you would get the gist of the point.
government spending is a huge and fundamental part of GDP
so no, govt income is not "derived from GDP'
you may well understanding moneylending but you don't understand economics
you havent understood some of the simplest key concepts and phrases
I didn't actually personally suggest 'spending out of a deficit' at all (the £100 hypothetical was explaining to the hard of thinking how the UK is not a business) but the concept of 'spending out of a deficit' isn't crazy or out-there. Its basic Keynesian economics.
Our deficit is expressed as a percentage of GDP. GDP is in essence all economic activity over an annualised period. From this activity, the government will receive income (taxes etc). It will then spend money. We are spending more than we earn. WHAT IS THE POINT YOU ARE TRYING TO MAKE??



So we come back to the question..... how is reckless investment going to get us out of this hole? Let me be clear - investment is going on every day of the week. The government is still investing. Private business is still investing. The government has merely cut back a bit. IT HAS NOT STOPPED SPENDING. WE ARE STILL RUNNING A MASSIVE DEFICIT.








